Comments on: Why College Grads Should Run Away from the First Time Homebuyer Tax Credit http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Ryan @ Planting Dollars http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21060 Ryan @ Planting Dollars Fri, 01 Jan 2010 18:22:41 +0000 http://cashmoneylife.com/?p=2056#comment-21060 Hey Curious Cat, I'm not sure if you read the whole article, but I never said real estate was a bad investment. I only said it wasn't right for college grads who have passions and dreams that require them to move outside the city they would be buying real estate in. That said, real estate is still a great investment... if someone is ready for it and okay with staying in the same location for the next 5 years at least.. Your comments seem to mirror the article, so I'm curious what you don't agree about? Hey Curious Cat,
I’m not sure if you read the whole article, but I never said real estate was a bad investment. I only said it wasn’t right for college grads who have passions and dreams that require them to move outside the city they would be buying real estate in. That said, real estate is still a great investment… if someone is ready for it and okay with staying in the same location for the next 5 years at least..

Your comments seem to mirror the article, so I’m curious what you don’t agree about?

]]> By: Curious Cat Investing Blog http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21058 Curious Cat Investing Blog Fri, 01 Jan 2010 15:20:32 +0000 http://cashmoneylife.com/?p=2056#comment-21058 I don't agree. It can be mistake for some but it can be a very good move for others. You do have to understand the potential of deciding to move (perhaps for a job). That should be weighed against the advantages. Like any investment, real estate can be a bad investment but it can also provide a very good return. People that get too excited about recent results make bad choices. Those that thought real estate was not risky learned the mistake in that thinking. But just because we have had a couple bad years for real estate does not mean it is now a bad investment. I don’t agree. It can be mistake for some but it can be a very good move for others. You do have to understand the potential of deciding to move (perhaps for a job). That should be weighed against the advantages. Like any investment, real estate can be a bad investment but it can also provide a very good return. People that get too excited about recent results make bad choices. Those that thought real estate was not risky learned the mistake in that thinking. But just because we have had a couple bad years for real estate does not mean it is now a bad investment.

]]> By: Jesse http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21028 Jesse Thu, 31 Dec 2009 05:27:24 +0000 http://cashmoneylife.com/?p=2056#comment-21028 Ryan, Two posts for you, two comments for me - slow and steady progress. I enjoyed this article just as much as the other one - you have an entertaining style. *I was on the floor reading the color picking synopsis. Hopefully, the readers will even see past the content itself and pick up what you're throwing down in the last paragraph. You are absolutely spot on. Some more "fun facts" to add about the credit. If you purchased your home in 2008, then you're only getting a really great loan. You'll owe the money eventually. What happened between '08 - '09? Not only was the credit increased, but you don't have to pay it back!?! No worries! we'll jet on down to the Imagination Inflation Station (better known as the Bureau of Engraving and Printing) and get a few more rolls of $8k bills. In essence, you're paying for this too. Ryan,

Two posts for you, two comments for me – slow and steady progress. I enjoyed this article just as much as the other one – you have an entertaining style. *I was on the floor reading the color picking synopsis.

Hopefully, the readers will even see past the content itself and pick up what you’re throwing down in the last paragraph. You are absolutely spot on.

Some more “fun facts” to add about the credit.
If you purchased your home in 2008, then you’re only getting a really great loan. You’ll owe the money eventually.

What happened between ’08 – ’09? Not only was the credit increased, but you don’t have to pay it back!?!

No worries! we’ll jet on down to the Imagination Inflation Station (better known as the Bureau of Engraving and Printing) and get a few more rolls of $8k bills. In essence, you’re paying for this too.

]]> By: TheMoneyMan-Leo http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21024 TheMoneyMan-Leo Thu, 31 Dec 2009 05:08:53 +0000 http://cashmoneylife.com/?p=2056#comment-21024 Couldn't agree more Ryan. As Robert Kiyosaki says...a single family home is just about the worst investment a young family can make. I advise young people all excited about real estate ownership to buy a 2-4 family place to start. Yeah yeah you don't want to be a landlord. I then point out that 2-10 other people will be going to work everyday to pay their mortgage. You get to learn all about the upkeep of a home and someone else will be footing the bill. It puts a different perspective on it for them. Better to be a landlord when you are young...doesn't have to be forever...than to be working at Wal-Mart in your 70s. Couldn’t agree more Ryan.

As Robert Kiyosaki says…a single family home is just about the worst investment a young family can make.

I advise young people all excited about real estate ownership to buy a 2-4 family place to start.

Yeah yeah you don’t want to be a landlord. I then point out that 2-10 other people will be going to work everyday to pay their mortgage. You get to learn all about the upkeep of a home and someone else will be footing the bill. It puts a different perspective on it for them.

Better to be a landlord when you are young…doesn’t have to be forever…than to be working at Wal-Mart in your 70s.

]]> By: Ryan @ Planting Dollars http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21025 Ryan @ Planting Dollars Thu, 31 Dec 2009 04:20:16 +0000 http://cashmoneylife.com/?p=2056#comment-21025 Leo - I think being a Wal-mart greeter in your 70's would be a blast! haha, but seriously, I agree with you on the 2-4 family bit. Two of my offers were on 4 families that cash flowed even when I occupied one unit using and FHA loan with only 3.5% as a down payment. I liked the numbers on them, which is what got me excited. The other offer with my sister was a fixer upper that would've been flipped in 2 years to avoid the capital gains tax. The tax credit was just a bit of icing on the cake for those scenarios. I'm glad you have the perspective you do. If people steadily invested in real estate they could have the ability to retire in 20-30 years quite easily. My parents didn't start until they were 30 and are "semi-retired" in their early 50's, which is still young in today's terms. Thank you for sharing your thoughts. Leo –
I think being a Wal-mart greeter in your 70′s would be a blast! haha, but seriously, I agree with you on the 2-4 family bit.

Two of my offers were on 4 families that cash flowed even when I occupied one unit using and FHA loan with only 3.5% as a down payment. I liked the numbers on them, which is what got me excited. The other offer with my sister was a fixer upper that would’ve been flipped in 2 years to avoid the capital gains tax. The tax credit was just a bit of icing on the cake for those scenarios.

I’m glad you have the perspective you do. If people steadily invested in real estate they could have the ability to retire in 20-30 years quite easily. My parents didn’t start until they were 30 and are “semi-retired” in their early 50′s, which is still young in today’s terms.

Thank you for sharing your thoughts.

]]> By: Financial Samurai http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21019 Financial Samurai Wed, 30 Dec 2009 23:56:13 +0000 http://cashmoneylife.com/?p=2056#comment-21019 Nice job Ryan on two guest posts in one day! Yes, you really did dodge a bullet by not closing on your home right after college. That's just waaaaay too young to be saddled with a mortgage, unless you know at least 90% for sure you want to be there for the next 5-10 years. After working for 4 years, and experiencing San Fran for 2 years, I pretty much knew I wanted to be here for a very long time. The balance of life and the outdoors (Tahoe, Napa, Hiking, golf, tennis, everything) and work was as optimal as I could find and so I took the plunge. The property is now a cash flow rental, and I will use it towards my retirement. Save 30% of the value of the property, and work AT LEAST 2 years (whichever comes first) before considering buying something. Best, Sam Nice job Ryan on two guest posts in one day!

Yes, you really did dodge a bullet by not closing on your home right after college. That’s just waaaaay too young to be saddled with a mortgage, unless you know at least 90% for sure you want to be there for the next 5-10 years.

After working for 4 years, and experiencing San Fran for 2 years, I pretty much knew I wanted to be here for a very long time. The balance of life and the outdoors (Tahoe, Napa, Hiking, golf, tennis, everything) and work was as optimal as I could find and so I took the plunge. The property is now a cash flow rental, and I will use it towards my retirement.

Save 30% of the value of the property, and work AT LEAST 2 years (whichever comes first) before considering buying something.

Best, Sam

]]> By: Derek http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21013 Derek Wed, 30 Dec 2009 21:29:39 +0000 http://cashmoneylife.com/?p=2056#comment-21013 So true, I've talked myself out of looking into a new house a couple of times. Though I'm dieing to get out of my apartment, you never know where life is going to take you. So true, I’ve talked myself out of looking into a new house a couple of times. Though I’m dieing to get out of my apartment, you never know where life is going to take you.

]]> By: Ryan @ Planting Dollars http://cashmoneylife.com/college-grads-first-time-homebuyer-tax-credit/#comment-21016 Ryan @ Planting Dollars Wed, 30 Dec 2009 21:15:24 +0000 http://cashmoneylife.com/?p=2056#comment-21016 I'm glad you guys agree... $8,000 is a lot of money dangling there as incentive, especially for broke college grads. However, in the long term it isn't really worth it if you're not happy and end up house poor. I’m glad you guys agree… $8,000 is a lot of money dangling there as incentive, especially for broke college grads. However, in the long term it isn’t really worth it if you’re not happy and end up house poor.

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